The impact of COVID-19 on tight financing from banks has made PT PP Properti Tbk take advantage of an injection from the parent company, PT PP, amounting to Rp. 1.6 trillion for the debt repayment.

With the issuer code, PPRO announced, the company has obtained a loan from PTPP with a total value of Rp1.6 trillion with an interest rate of 9.5 percent or 0.791 percent per month and is non-revolving with a period of 36 months.

"We will use this loan to fulfill part of the maturing financial obligations (SKBDN, bank debt, interest payable, and MTN due)," he said in his statement in Jakarta, on Monday (25/1).

The transaction value of Rp1.6 trillion represents 35.25 percent of the company's equity-based on the financial statements as of September 30, 2020. Thus, transactions carried out by the company are material transactions under the provisions of OJK Regulations.

In his statement, he chose to make a loan to the parent company because of the COVID-19 pandemic, which impacted banks' tightening policies in providing funding.

"So a loan from PTPP as a shareholder is required to fulfill part of the maturing financial obligations (SKBDN, bank debt, interest payable, and maturing MTN) and that this transaction activity must be carried out to support the PTPP Group's business synergy. Also, PTPP is the holder of controlling shares of the company, "he explained.